5 Leveraged ETF Winners on S&P 500's Best Week Since November

The S&P 500 logged its biggest weekly gain since November as Big Tech stocks rallied. With this, U.S. stocks pared their April losses on Apr 26. The S&P 500 advanced 2.7% last week, the Dow Jones inched up 0.7% and the Nasdaq jumped 4.2%. Let’s highlight the key events of the last week.

Best Week for “Magnificent Seven” Since November

The batch of tech giants known as the “Magnificent Seven” regained some of its momentum at the end of the week, following positive earnings reports from Google-parent Alphabet GOOGL and Microsoft MSFT.

Alphabet which gained 11.3% last week on the back of upbeat earnings, became the fourth U.S. company to reach the $2-trillion market cap milestone. On the other hand, Facebook-parent Meta (Meta) offered downbeat revenue guidance and saw shares slumping 9.4% last week. Tesla TSLA gained 19.7% on future affordable EV plans despite the Q1 miss.

Most tech companies’ promise to spend big on the AI revolution boosted the NVIDIA NVDA stock, which jumped 12.3% last week. Meanwhile, MSFT, Amazon (AMZN) and Apple AAPL recorded modest gains of 1.6%, 1.5% and 2.1%, respectively.

Alphabet, Amazon, Apple, Meta, Microsoft, NVIDIA and Tesla collectively added $686 billion in market value, in their strongest weekly performance since the week ending Nov 3, 2023, according to Dow Jones Market Data, as quoted on MarketWatch. However, despite last week's resurgence, both Apple and Tesla remain in negative territory for the year.

U.S. Economic Growth Slowed in Q1

The U.S. economy expanded at the slowest pace in two years, with GDP rising 1.6% annually in the first quarter, missing Wall Street expectations of a 2.4% increase. The growth reflects a clear slowdown from the 3.4% increase in the fourth quarter of 2023 and was also much lower than the 4.9% reported in the year-ago quarter (read: GDP Growth Slows in Q1: 5 ETFs to Invest In).

U.S. Core PCE Inflation Rises Faster Than Expected

U.S. inflation, as measured by the change in the Personal Consumption Expenditures (PCE) Price Index, rose to 2.7% on a yearly basis in March from 2.5% in February. This reading came in above the market expectation of 2.6% (read: 4 ETF Areas to Play Amid Slower Growth & Rising Inflation).

The core PCE Price Index, which excludes volatile food and energy prices, held steady at 2.8% on a yearly basis, surpassing analysts' estimate of 2.6%.On a monthly basis, the PCE Price Index and the core PCE Price Index both rose 0.3%.

Core Personal Consumption Expenditures (PCE) index surged 3.7% year over year in the first quarter. This topped estimates of 3.4% and marked a substantial increase from the 2% gain in the previous quarter. This surge in inflation raised doubts about the sooner-than-expected U.S. interest rate cuts.

The U.S. 10-year Treasury yield reached 4.70% on Apr 25, 2024, marking the first time since early November. However, the yield closed the week at 4.67%. Markets are now pricing in only one interest rate cut this year, reflecting a significant shift from the earlier projections. Powell's recent statements, which stress the need for “greater confidence” in the decline of inflation before considering rate cuts, also reinforced this sentiment.

Best Leveraged ETFs in Focus

Against this backdrop, below we highlight a few winning leveraged ETFs of last week.

Direxion Daily NVDA Bull 2X Shares NVDU – Up 31.4%

The Direxion Daily NVDA Bull 2X Shares seeks daily investment results, before fees and expenses, of 200% of the performance of the common shares of NVIDIA Corporation. The expense ratio of the fund is 1.04%.

Direxion Daily Semiconductor Bull 3x Shares SOXL – Up 29.3%

The Direxion Daily Semiconductor Bull 3x Shares seeks daily investment results, before fees and expenses, of 300% of the performance of the ICE Semiconductor Index. The expense ratio of the fund is 0.76%.

GraniteShares 2x Long TSLA Daily ETF TSLR – Up 28.8%

The GraniteShares 2x Long TSLA Daily ETF seeks daily investment results, before fees and expenses, of 2 times the daily percentage change of the common stock of Tesla Inc. The expense ratio of the fund is 1.50%.

GraniteShares 2x Long COIN Daily ETF CONL – Up 23.8%

The GraniteShares 2x Long COIN Daily ETF seeks daily investment results, before fees and expenses, of 2 times the daily percentage change of the common stock of Coinbase Global Inc. The expense ratio of the fund is 1.15%.

T-Rex 2X Long Alphabet Daily Target ETF GOOX – Up 23.7%

The T-Rex 2X Long Alphabet Daily Target ETF seeks to magnify the daily performance of the publicly traded common stock of Alphabet Inc. The expense ratio of the fund is 1.05%.


 

Want key ETF info delivered straight to your inbox?

Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.

Get it free >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Apple Inc. (AAPL) : Free Stock Analysis Report

Microsoft Corporation (MSFT) : Free Stock Analysis Report

NVIDIA Corporation (NVDA) : Free Stock Analysis Report

Tesla, Inc. (TSLA) : Free Stock Analysis Report

Alphabet Inc. (GOOGL) : Free Stock Analysis Report

Direxion Daily Semiconductor Bull 3X Shares (SOXL): ETF Research Reports

GraniteShares 2x Long COIN Daily ETF (CONL): ETF Research Reports

GraniteShares 2x Long TSLA Daily ETF (TSLR): ETF Research Reports

Direxion Daily NVDA Bull 2X Shares (NVDU): ETF Research Reports

T-REX 2X Long Alphabet Daily Target ETF (GOOX): ETF Research Reports

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Tags

More Related Articles

Info icon

This data feed is not available at this time.

Sign up for the TradeTalks newsletter to receive your weekly dose of trading news, trends and education. Delivered Wednesdays.